MINDSET DYNAMICS IN RISK TAKING – HOW DECISION MAKING AND PERFORMANCE CAN PROFIT FROM DELIBERATIVE AND IMPLEMENTAL STATES OF MIND

The goal of the research presented in this dissertation is to analyze decision-making processes in different mindsets, specifically their impact on economic risk-taking behavior, and to find out whether they can support better performance and outcomes. This is a major concern of motivation research in general: understanding the reasoning mechanisms that determine actions and using that knowledge to promote healthy and rational behavior. In the present work, this goal related to a specific set of behaviors, that is, decisions under risk and in an economic context. A key strategy to improve outcomes in this field is to increase rational choices. More than that, however, this work also focuses on decision processes that forego rational or irrational behavior, to better understand the nature of mindset effects. Thus, it is not only relevant how individuals decide, but also how they arrive at that decision. To that end, risk-taking situations were examined with repeated measurements, different levels of difficulty, and different incentives. To explain mindset effects and their overall implications for risk taking, achievement motivation, learning processes, and different strategies of goal pursuit are discussed. All in all, the goal of this work is to provide new insights into risk-taking behavior and decision processes in economic contexts, as they are influenced by different states of mind. In addition, possible measures to help increase rationality in risky situations are outlined to provide some practical applications for the findings of this work. For some, the suggestion of the “improvement” of decisions through manipulations of individuals’ states of mind may have an Orwellian ring to it. On the contrary, however, the present research will hopefully increase knowledge about naturally occurring, everyday mindsets and their impact on human perception and behavior, in order to enable or train people to make a targeted use of their mindsets and reach their desired goals.